2011-11-08T10:43:50-06:00 2011-06-30 CRAWLEY LEE & COMPANY PA PO BOX 5595 ASHEVILLE NC 28813 990 2010-07-01 560767736 WARREN WILSON COLLEGE WARR 8282983325 PO BOX 9000 ASHEVILLE NC 288159000 JONATHAN EHRLICH 8282983325 2011-11-03 JAMES A LEE 8282745524 2010 2016-02-24 21:20:13Z JONATHAN EHRLICH PO BOX 9000 ASHEVILLE NC 288159000 49623329 0 X WWW.WARREN-WILSON.EDU X 1962 NC THE MISSION OF WARREN WILSON COLLEGE IS TO PROVIDE A DISTINCTIVE UNDERGRADUATE AND GRADUATE LIBERAL ARTS EDUCATION. THE COLLEGE'S UNDERGRADUATE EDUCATION COMBINES ACADEMICS, WORK, AND SERVICE IN A LEARNING COMMUNITY COMMITTED TO ENVIRONMENTAL RESPONSIBILITY, CROSS-CULTURAL UNDERSTANDING, AND THE COMMON GOOD. THE COLLEGE IS AN INDEPENDENT, ACCREDITED, FOUR-YEAR LIBERAL ARTS COLLEGE WHICH AWARDS THE BACHELOR OF ARTS AND BACHELOR OF SCIENCE DEGREE IN A VARIETY OF DISCIPLINES AND THE MASTER OF FINE ARTS DEGREE IN CREATIVE WRITING. 34 31 1492 33 -148049 -148049 4864596 6041730 30520563 30705645 5739144 2391736 1025640 1539565 42149943 40678676 7579561 8047226 0 0 18745495 18738276 0 0 1167619 11535059 11231195 37860115 38016697 4289828 2661979 97044933 101597511 18819627 18563082 78225306 83034429 X THE MISSION OF WARREN WILSON COLLEGE IS TO PROVIDE A DISTINCTIVE UNDERGRADUATE AND GRADUATE LIBERAL ARTS EDUCATION. THE COLLEGE'S UNDERGRADUATE EDUCATION COMBINES ACADEMICS, WORK, AND SERVICE IN A LEARNING COMMUNITY COMMITTED TO ENVIRONMENTAL RESPONSIBILITY, CROSS-CULTURAL UNDERSTANDING, AND THE COMMON GOOD. THE COLLEGE IS AN INDEPENDENT, ACCREDITED, FOUR-YEAR LIBERAL ARTS COLLEGE WHICH AWARDS THE BACHELOR OF ARTS AND BACHELOR OF SCIENCE DEGREE IN A VARIETY OF DISCIPLINES AND THE MASTER OF FINE ARTS DEGREE IN CREATIVE WRITING. 0 0 31366615 8047226 29975603 MOST PROGRAMS RENDERED ARE RELATED TO PROVIDING STUDENTS, ON A NON-DISCRIMINATORY BASIS, FOUR-YEAR LIBERAL ARTS DEGREES THROUGH AN INTEGRATED TRIAD OF ACADEMIC STUDY, USEFUL AND PRODUCTIVE WORK, AND SERVICE TO OTHERS BEYOND THE CAMPUS COMMUNITY. THE FULL-TIME EQUIVALENT ENROLLMENT AT THE COLLEGE DURING THE 2009-10 ACADEMIC YEAR WAS APPROXIMATELY 948 UNDERGRADUATE STUDENTS, AND A TOTAL OF 198 STUDENTS GRADUATED FROM THE COLLEGE DURING THE YEAR. A LOW-RESIDENCY GRADUATE PROGRAM IN CREATIVE WRITING LEADING TO A MASTER OF FINE ARTS DEGREE IS ALSO OFFERED, AND AVERAGES AROUND 75 ENROLLEES. THE COLLEGE PREPARES STUDENTS REPRESENTING A BROADLY DIVERSE WORLD FOR SERVICE, LEADERSHIP, AND MEANINGFUL LIFELONG WORK AND STUDY BY OFFERING AN EDUCATIONAL PROGRAM THAT ENABLES STUDENTS TO THINK CRITICALLY, OBTAIN AND EVALUATE INFORMATION EFFECTIVELY, AND COMMUNICATE CLEARLY, INTRODUCING THEM TO A VARIETY OF WAYS BY WHICH HUMANS ACQUIRE AND USE KNOWLEDGE, AND THAT PROVIDES STUDENTS WITH OPPORTUNITIES TO DEVELOP A BREADTH OF UNDERSTANDING AND TO MAKE CONNECTIONS AMONG AREAS CONSIDERED CRITICAL TO A LIBERAL ARTS CURRICULUM, REQUIRING THAT THEY DEMONSTRATE A DEPTH OF UNDERSTANDING THROUGH COMPETENCE IN ONE OR MORE ACADEMIC DISCIPLINES. ENVIRONMENTAL STUDIES IS THE MAJOR WITH THE LARGEST NUMBER OF STUDENTS, IN KEEPING WITH ANOTHER INSTITUTIONAL OBJECTIVE, THAT OF PROMOTING ENVIRONMENTAL RESPONSIBILITY THROUGH EDUCATION, CAMPUS OPERATIONS, POLICY, AND COMMUNITY OUTREACH. THE COLLEGE ALSO FURNISHES STUDENTS WITH OPPORTUNITIES TO UNDERSTAND AND APPRECIATE A VARIETY OF CULTURES, ASSISTING THEM IN DEVELOPING AWARENESS OF THE COMMONALITY OF HUMAN PROBLEMS AND THE DIVERSITY OF THE WORLD. TOWARD THESE ENDS, THE COLLEGE SPONSORED A NUMBER OF STUDY ABROAD DESTINATIONS IN ENGLAND, COSTA RICA, PANAMA, CHINA, INDIA, IRELAND AND ALASKA TO WHICH 65 STUDENTS TRAVELED, LED BY THE COLLEGE'S OWN FACULTY AND STAFF. IN ADDITION, 39 STUDENTS STUDIED ABROAD INDEPENDENTLY FOR THE SUMMER, SEMESTER, OR YEAR WITH PARTNER INSTITUTIONS OR OTHER U.S. ACCREDITED PROGRAMS IN CHINA, ENGLAND, BOTSWANA, MEXICO, THAILAND, NORTHERN IRELAND, SPAIN, ARGENTINA, DOMINICAN REPUBLIC, UGANDA, CHILE, ECUADOR, INDIA, ITALY, JORDAN, NEW ZEALAND, AUSTRALIA, BRAZIL, MONGOLIA, SOUTH AFRICA, AND TANZANIA. THE TRIAD CONCEPT OF EDUCATION ALSO LEADS STUDENTS INTO CONSIDERED REFLECTION ON THE MEANING AND VALUE OF WORK AND SERVICE TO OTHERS, GUIDING STUDENTS IN EXAMINING THEIR LIVES AND ARTICULATING THEIR BELIEFS AND VALUES, AND PROVIDES THEM WITH OPPORTUNITIES FOR PERSONAL, PHYSICAL, MORAL, AND SPIRITUAL DEVELOPMENT. TOWARDS THESE ENDS, THE COLLEGE ORGANIZED 115 DIVERSE WORK CREWS IN THE COLLEGE WORK PROGRAM DURING THE YEAR, WITH APPROXIMATELY 853 STUDENTS PARTICIPATING IN THE FALL OF 2010 AND 792 STUDENTS PARTICIPATING IN THE SPRING OF 2011. THE ANNUAL COLLEGE-WIDE WORK DAY YIELDED ABOUT 432 STUDENT PARTICIPANTS AND ABOUT 25 FACULTY/STAFF PARTICIPANTS. IN THE SERVICE AREA OF THE TRIAD, OVER 850 STUDENTS COMPLETED 25,830 VOLUNTEER HOURS AT 289 LOCAL, NATIONAL, AND INTERNATIONAL AGENCIES DURING THE YEAR. 501967 15800 730042 THE SWANNANOA GATHERING IS A SERIES OF WEEKLY EDUCATIONAL SUMMER MUSIC WORKSHOPS HELD ON THE WARREN WILSON COLLEGE CAMPUS EACH JULY AND AUGUST. THE ENROLLMENT IS LIMITED, WITH AN OPEN FORMAT, WHICH ALLOWS EACH STUDENT TO SELECT THEIR OWN CURRICULUM FROM A VARIETY OF COURSES WITH DIFFERENT EXPERIENCE LEVELS AND ABILITIES. HOUSING AND MEALS FOR PARTICIPANTS IS AN OPTION. THE NORTH CAROLINA DEPARTMENT OF PUBLIC INSTRUCTION HAS ALLOWED 3 HOURS OF TEACHING CERTIFICATE RENEWAL CREDITS, WITH PRIOR APPROVAL, FOR EACH WEEK OF THE SERIES. TOTAL PARTICIPANTS IN THE SUMMER OF 2010 WERE 887, RANGING BETWEEN 43 AND 234 PARTICIPANTS FOR EACH OF THE FIVE WEEKS. 31868582 1 1 0 0 0 0 0 1 1 1 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 272 0 1492 1 1 1 0 0 0 0 0 1 2 0 0 0 X 34 31 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 1 0 X MARY DAVIS CONTROLLER 8282983325 701 WARREN WILSON ROAD SWANNANOA NC 28778 JOHN W ALEXANDER 2.00 X 0 0 0 H ROSS ARNOLD III 2.00 X 0 0 0 STUART U BUICE 1.50 X 0 0 0 WILLIAM H CHRISTY 2.00 X 0 0 0 DONALD R COOPER 1.50 X 0 0 0 DR HENRY J COPELAND 2.00 X 0 0 0 DR SHERLE STEVENSON EDWARDS 1.50 X 0 0 0 DR JONATHAN L ELION 2.00 X 0 0 0 THOMAS F FRIST 1.50 X 0 0 0 THOMAS K JOHNSON 2.00 X 0 0 0 DR STEVEN M KANE 1.50 X 0 0 0 THOMAS L KILDAY 1.50 X 0 0 0 JAMES A KUHNS 1.50 X 0 0 0 DR ANNE GRAHAM MASTERS 2.00 X 0 0 0 DR KENNETH B ORR 1.50 X 0 0 0 MACK B PEARSALL 2.00 X 0 0 0 ROBERT G SMITH 1.00 X 0 0 0 DR GEORGE E STUART 2.00 X 0 0 0 REV DR TERRY V SWICEGOOD 2.00 X 0 0 0 STEPHEN L UMMEL 2.00 X 0 0 0 FRANCIS M WHITFIELD 1.50 X 0 0 0 MIMI R CECIL EX-OFFICIO X 0 0 0 SUSANNAH MCHEWNING EX-OFFICIO 1.50 X 0 0 0 HOWELL L FERGUSON EX-OFFICIO X 0 0 0 JOSEPH KARPEN EX-OFFICIO 1.50 X 0 0 0 MELANIE A KEMP EX-OFFICIO 1.50 X 0 0 0 DR LUCY A LAWRENCE EX-OFFICIO 1.50 X 0 0 0 REV THOMAS F MAINOR EX-OFFICIO 1.50 X 0 0 0 DR HUGH D VERNER EX-OFFICIO X 0 0 0 KERITH AWILLEVER 1.50 X 0 0 0 JOEL B ADAMS 2.50 X X 0 0 0 ALICE C BUHL 2.50 X X 0 0 0 ROWENA POMEROY NON-VOTING 40.00 X 43805 0 8714 LESLIE ANDERSON 2.00 X X 0 0 0 WILLIAM S PFEIFFER EX-OFFICIO 40.00 X X X 213867 0 44614 PAULA K GARRETT 40.00 X 113083 0 20789 JONATHAN D EHRLICH 40.00 X 111719 0 21447 RICHARD BLOMGREN 40.00 X 114043 0 21682 DEBORAH L MYERS FROM 7110 40.00 X 38521 0 13477 IAN ROBERTSON 40.00 X 77139 0 15753 CATHERINE KRAMER 40.00 X 68828 0 19692 MARGO FLOOD 40.00 X 72351 0 10951 DEBRA KILIRU 92109 - 73110 40.00 X 28986 0 7032 DEBRA GILDEA 40.00 X 85986 0 15808 LARRY MODLIN RETIRED 63008 40.00 X 35302 0 0 DOUGLAS ORR JR DEFERRED COMPENSATI 40.00 X 45982 0 0 968328 0 199959 4 0 1 0 0 2416615 3625115 412887 6041730 TUITION AND FEES 611310 23663382 23663382 AUXILIARY ENTERPRISES 611710 6312221 6312221 SWANNANOA GATHERING 611600 730042 730042 30705645 -371787 23940 -395727 11349183 8548523 37137 2800660 -37137 2763523 2763523 187004 358993 -171989 -171989 OTHER 900099 1206037 1206037 CHANGE IN INTEREST RAT 900099 289383 289383 GAIN FROM UNUSUAL ITEM 900099 216134 216134 1711554 40678676 30705645 -148049 4079350 70000 70000 7977226 7977226 853523 794817 58706 14674329 13114137 990328 569864 1027566 820781 149385 57400 1307971 1083018 166363 58590 874887 680457 145611 48819 590053 590053 1940742 1713520 227222 AUXILIARY ENTERPRISES-O 2458101 2458101 INSTITUTIONAL SUPPORT & 2290957 1916717 374240 INSTRUCTION-OTHER 1558088 1558088 STUDENT SERVICES-OTHER 1422326 1422326 ACADEMIC SUPPORT-OTHER 630428 630428 340500 340500 38016697 31868582 4980496 1167619 1150 1850 7183527 8220392 96012 118879 480417 457004 68438 48010 176494 191870 302458 283834 67087432 34438115 34120279 32649317 16712073 17026965 32166084 35819766 5738001 6779624 97044933 101597511 366627 810371 666620 740737 12605000 12065000 5181380 4946974 18819627 18563082 X 31617212 31819329 22115110 24051896 24492984 27163204 78225306 83034429 97044933 101597511 X 2661979 2147144 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 85654 396641 409612 72683 0 51020460 2307494 4549816 1018222 1253582 1520 55604446 44624971 535142 7925351 940636 1123964 404 51020460 45535622 3001958 -1973292 918433 1011527 9357 44624971 0.17800 0.33350 0.48850 1 0 2964494 2964494 51063964 22938203 28125761 12424572 11180007 1244565 634402 319905 314497 32649317 CASH EQUIVALENTS 70460 F LIMITED PARTNERSHIPS 35749306 F 35819766 CASH/EQUIVALENTS RESTRICTED TO INVESTMENT IN PROPERTY & EQUIPMENT 202063 OTHER ASSETS 167403 BENEFICIAL INTEREST IN CHARITABLE REMAINDER & PERPETUAL TRUSTS 5320527 CONSTRUCTION IN PROGRESS 22524 PROPERTY HELD FOR RESALE 1067107 6779624 ADVANCE TUITION & ROOM DEPOSITS 2330618 OBLIGATIONS UNDER CAPITAL LEASE 173049 SWAP INSTRUMENT 1455647 OTHER 157916 LINE OF CREDIT 240353 ANNUITY PAYABLE 589391 4946974 40678676 38016697 2661979 2147144 2147144 4809123 35207587 2147144 -7977226 -5830082 41037669 -358993 -358993 40678676 30398464 0 30398464 7618233 7618233 38016697 PART IV, LINE 1B: THE COLLEGE HOLDS FUNDS FOR A VARIETY OF ACADEMIC, INSTITUTIONAL, AND STUDENT GROUPS AND ACCOUNTS FOR ADDITIONS TO, AND DISTRIBUTIONS FROM, THESE FUNDS SEPARATELY. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE COLLEGE'S ENDOWMENT INVESTMENT AND SPENDING POLICIES, APPROVED BY THE BOARD OF TRUSTEES, WORK TOGETHER IN AN ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF ITS ENDOWMENT ASSETS OVER THE LONG TERM THROUGH ADDITIONAL REAL GROWTH FROM INVESTMENT RETURNS. THE INVESTMENT POLICY ESTABLISHES AN ACHIEVABLE LONG-TERM RETURN OBJECTIVE OF AT LEAST 6% ABOVE INFLATION OVER A PERIOD OF TEN YEARS THROUGH DIVERSIFICATION OF ASSET CLASSES, RELYING ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED) AND CURRENT YIELD (INTEREST AND DIVIDENDS). THE SPENDING POLICY CALCULATES THE DISBURSEMENT FROM THE ENDOWMENT FUNDS BASED ON 5% OF THE AVERAGE FAIR VALUE OF THE PRIOR 12 QUARTERS, ALLOWING FOR THE PRESERVATION OF PRINCIPAL AS WELL AS CAPITAL APPRECIATION. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FINANCIAL STATEMENT NOTE FOR LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): THE COLLEGE'S POLICY IS TO EVALUATE ALL TAX POSITIONS AND TO CONSULT WITH EXPERTS TO IDENTIFY THOSE THAT MAY BE CONSIDERED UNCERTAIN. ALL IDENTIFIED MATERIAL TAX POSITIONS WILL BE ASSESSED AND MEASURED BY A REASONABLY POSSIBLE THRESHOLD TO DETERMINE IF THE BENEFIT OF AN UNCERTAIN TAX POSITION SHOULD BE RECOGNIZED IN THE FINANCIAL STATEMENTS. ANY CHANGES IN THE AMOUNT OF A TAX POSITION WILL BE RECOGNIZED IN THE PERIOD THE CHANGE OCCURS. THE COLLEGE IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, EXCEPT ON INCOME DERIVED FROM UNRELATED BUSINESS INCOME. THE COLLEGE'S FEDERAL RETURNS OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) FOR 2010, 2009 AND 2008 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY ARE FILED. THE COLLEGE'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS (FORM 990T) FOR 2010 AND 2009 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY ARE FILED. PART XII, LINE 2D - OTHER ADJUSTMENTS: SCHOLARSHIPS & FELLOWSHIPS NETTED WITH TUITION ON FINANCIAL STATEMENTS -7,977,226. PART XII, LINE 4B - OTHER ADJUSTMENTS: UNRELATED BUSINESS COST OF GOODS SOLD REPORTED SEPARATELY ON FORM 990-T -358,993. PART XIII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS & FELLOWSHIPS NETTED WITH TUITION ON FINANCIAL STATEMENTS 7,977,226. UNRELATED BUSINESS COST OF GOODS SOLD REPORTED SEPARATELY ON FORM 990-T -358,993. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 NONDISCRIMINITORY POLICIES OF THE COLLEGE ARE MADE KNOWN TO ALL SCHOOLS AND AREAS VISITED BY THE ADMISSIONS PERSONNEL AS WELL AS IN ALL COLLEGE LITERATURE. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 WARREN WILSON COLLEGE RECEIVES FEDERAL AND STATE FINANCIAL AID AND GRANTS. 1 FURMAN UNIVERSITY 3300 POINSETT HIGHWAY GREENVILLE SC 296130002 570314395 N/A 70000 "ADVANCING ENVIRONMENTAL LITERACY" PROGRAM IN COLLABORATION WITH AND EXPANSION TO FURMAN UNIVERSITY AND OTHER COLLEGES, FUNDED BY A COLLABORATIVE GRANT FROM THE ARTHUR VINING DAVIS FOUNDATION. 1 FEDERAL CAMPUS NEED-BASED FINANCIAL AID GRANTS (FEDERAL SEOG) AWARDED TO WARREN WILSON COLLEGE STUDENTS. 73 107977 NORTH CAROLINA STATE CAMPUS NEED-BASED FINANCIAL AID GRANTS (NC CONTRACTUAL) AWARDED TO WARREN WILSON COLLEGE STUDENTS. 70 181035 INSTITUTIONAL NEED-BASED FINANCIAL AID GRANTS AND MERIT SCHOLARSHIPS FOR WARREN WILSON COLLEGE STUDENTS FUNDED BY RESTRICTED DONATIONS, ENDOWMENT EARNINGS, AND OPERATING FUNDS. 680 6240314 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE OFFICE OF ADVANCEMENT WORKS WITH DONORS TO ESTABLISH GUIDELINES FOR THE USE AND DISBURSEMENT OF ANY DONATED FUNDS ACCORDING TO THE DONOR'S WISHES AND WITHIN PRACTICAL AND LEGAL PROCESSES. THE DONOR'S RESTRICTIONS ("WISHES") ARE PUT IN WRITING WITH COPIES MAINTAINED IN THE ADVANCEMENT OFFICE, THE CONTROLLER'S OFFICE, AND THE FINANCIAL AID OFFICE, IF APPLICABLE. IF THE DONATION IS FOR GRANTS OR SCHOLARSHIPS TO BE DISTRIBUTED BY THE FINANCIAL AID OFFICE, THE ASSISTANT DIRECTOR OF FINANCIAL AID MAINTAINS A SPREADSHEET OF GRANT TITLES AND RESTRICTIONS WHICH ARE UPDATED AS NEEDED AS WELL AS A PERMANENT PAPER FILE. THE GRANTS OR SCHOLARSHIPS ARE "MATCHED" WITH AN ELIGIBLE RECIPIENT BY THE ASSISTANT DIRECTOR. THE ADVANCEMENT OFFICE WILL RECEIVE A LIST OF THESE RECIPIENTS IN THE FALL AND AN UPDATED LIST IN THE EARLY SPRING. THE ADVANCEMENT OFFICE REVIEWS THE LIST AND PREPARES LUNCHEON INVITATIONS FOR MOST OF THE RECIPIENTS AND DONORS. THE FINAL STEP IN THE PROCESS IS A RANDOM AUDIT CONDUCTED ONCE A YEAR BY AN OUTSIDE AUDIT FIRM. SCHEDULE I, PART III(A) - GRANTS AND OTHER ASSISTANCE TO INDIVIDUALS IN THE UNITED STATES: NEED-BASED GRANTS WERE AWARDED TO WARREN WILSON COLLEGE STUDENTS BASED ON FAFSA RESULTS. MERIT SCHOLARSHIPS WERE NOT BASED UPON FAFSA RESULTS, BUT MANY OF THESE DOLLARS WERE USED TO MEET THE FEDERAL DEFINITION OF "NEED". X X X 0 1 X X X X 0 0 0 0 0 0 0 0 0 WILLIAM S PFEIFFER EX-OFFICIO 207780 0 0 0 6087 0 20400 0 24214 0 258481 0 0 0 PART I, LINE 1A DISCRETIONARY SPENDING ACCOUNT: THE COLLEGE DOES NOT BUDGET DISCRETIONARY ACCOUNTS. HOWEVER, SOME OFFICERS HAVE DISCRETIONARY FUNDS THAT DONORS HAVE RESTRICTED FOR THAT PURPOSE. HOUSING ALLOWANCE/PERSONAL RESIDENCE: AS CONDITIONS OF EMPLOYMENT, THE PRESIDENT AND DEAN OF STUDENTS ARE REQUIRED TO LIVE ON CAMPUS IN COLLEGE-OWNED RESIDENCES. PERSONAL SERVICES: THE PRESIDENT IS REIMBURSED FOR THE CLEANING OF HIS HOME AND FOR OTHER EXPENSES RELATED TO OFFICIAL COLLEGE FUNCTIONS THAT TAKE PLACE THERE. IN ADDITION, THE COLLEGE STAFF PROVIDES LANDSCAPING, MAINTENANCE AND OTHER RELATED SERVICES FOR THE PRESIDENT'S HOME. PART I, LINE 1B ALTHOUGH THE COLLEGE DOES NOT HAVE A WRITTEN POLICY REGARDING PAYMENT OR REIMBURSEMENT OF THE EXPENSES REFERRED TO IN SCHEDULE J, PART I, LINE 1A, IT IS UNDERSTOOD BY EMPLOYEES THAT THE COLLEGE UTILIZES BEST PRACTICES. THE COLLEGE HAS POLICIES IN PLACE IN REGARD TO REIMBURSEMENT OF EXPENSES FOR TRAVEL, ENTERTAINMENT, AND SIMILAR EXPENSES. ALL OFFICERS, TRUSTEES, AND THE COLLEGE PRESIDENT FOLLOW ACCOUNTABLE REIMBURSEMENT PLANS. NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY 65818PEH8 2006-02-16 15000000 SEE SCHEDULE K, PART V SUPPLEMENTAL INFORMATION 0 0 0 2935000 12065000 184986 4961651 9853363 2007 1 0 1 1 0 0 0 0 0 1 0 1 1 BANK OF AMERICA MERRILL LYNCH 20.250000000000 0 0 0 0 0 SCHEDULE K SUPPLENTAL INFORMATION THE $15,000,000 PROCEEDS OF THE BONDS ISSUED ON FEBRUARY 16, 2006 WERE USED AS FOLLOWS: $8,935,000 TO PAY OFF THE PRINCIPAL OF SERIES 1998 BONDS, $918,363 TO PAY OFF THE PRINCIPAL OF A 2002 NOTE, $184,986 FOR BOND ISSUANCE COSTS, AND $4,961,651 FOR THE PROJECT OF CONSTRUCTION, RENOVATION, AND EQUIPPING CERTAIN BUILDINGS ON THE COLLEGE CAMPUS. THE PROJECT WAS SUBSTANTIALLY COMPLETED AND ALL BOND PROCEEDS WERE EXPENDED BY THE END OF FISCAL YEAR 2007. THE BONDS MATURE ON JUNE 1, 2031, AND THE REMAINING BOND PRINCIPAL BALANCE AT JUNE 30, 2011 WAS $12,065,000. EVELYN PFEIFFER WIFE OF PRESIDENT 20000 WITH THE APPROVAL OF THE COLLEGE BOARD OF TRUSTEES, THE PRESIDENT'S WIFE RECEIVES $20,000 IN TAXABLE INCOME ANNUALLY FROM THE COLLEGE FOR THE PERFORMANCE OF CERTAIN OFFICIAL DUTIES AS THE SPOUSE OF THE PRESIDENT. 0 0 X 2 36952 FAIR MARKET VALUE X 2 1365 SELLING PRICE X PERPETUAL TRUST 1 374570 PRESENT VALUE OF ESTIMATED FUTURE CASH RECEIPTS 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 UPON RECEIVING THE DRAFT COPY OF THE FORM 990, CERTAIN QUESTIONS THAT ARISE ARE DISTRIBUTED TO THE APPROPRIATE STAFF. KEY PERSONNEL AND TRUSTEES REVIEW THE FORM 990 BEFORE IT IS SIGNED, INCLUDING THE VICE PRESIDENT FOR ADMINISTRATION AND FINANCE/CHIEF FINANCIAL OFFICER AND THE CONTROLLER, AND THE CHAIR OF THE STANDING AUDIT COMMITTEE AND THE CHAIR OF THE BOARD. THE FULL BOARD IS PROVIDED THE OPPORTUNITY TO REVIEW THE COPY OF THE 990 WITHOUT SCHEDULE B ON ITS PASSWORD-PROTECTED WEBSITE, WITH A NOTICE THAT THE SCHEDULE B IS AVAILABLE FOR REVIEW IN THE CONTROLLER'S OFFICE. FORM 990, PART VI, SECTION B, LINE 12C THE COLLEGE HAS A WRITTEN CONFLICT OF INTEREST POLICY, LAST AMENDED ON OCTOBER 2, 2007, WHICH SPECIFIES IN DETAIL THOSE CIRCUMSTANCES GIVING RISE TO A POTENTIAL CONFLICT OF INTEREST ON THE PART OF THE COLLEGE TRUSTEES. PURSUANT TO THIS POLICY, TRUSTEES MUST FILE AN ANNUAL REPORT SPECIFYING ANY RELATIONSHIPS OR ACTIVITIES WHICH MIGHT POSSIBLY CONSTITUTE A CONFLICT. THESE REPORTS ARE REVIEWED BY THE CHAIR OF THE AUDIT COMMITTEE OF THE BOARD AS WELL AS THE CHAIR OF THE BOARD OF TRUSTEES AND ANY ISSUES RAISED BY A SPECIFIC REPORT ARE RESOLVED ACCORDING TO THE PROCEDURES OUTLINED IN THE CONFLICT OF INTEREST POLICY. A SIMILAR POLICY FOR EMPLOYEES OF THE COLLEGE WAS APPROVED AT A STAFF FORUM ON MARCH 23, 2011, AND DEFINES CONFLICT OF INTEREST AND RELATED TERMS AND OUTLINES A PROCEDURE FOR DISCLOSURE, REPORTING AND COMPLIANCE WITH THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES, ACTING EITHER AS A BOARD OR THROUGH ITS EXECUTIVE COMMITTEE, IS RESPONSIBLE FOR AN ANNUAL REVIEW OF THE PRESIDENT'S PERFORMANCE AND APPROVES ANY ADJUSTMENTS TO HIS ANNUAL SALARY AS PART OF THAT REVIEW. THE PROCESS FOR THIS REVIEW AND APPROVAL HAS IN THE PAST CONSISTED OF (1) A REVIEW OF THE PRESIDENT'S ACTIVITIES AND ACHIEVEMENTS EACH YEAR BY THE CHAIR OF THE BOARD; (2) A REPORT BY THE CHAIR OF THE RESULTS OF THAT REVIEW TO THE FULL BOARD OR THE EXECUTIVE COMMITTEE OF THE BOARD, DEPENDING UPON WHETHER THE REVIEW IS A ONE-YEAR REVIEW OR A THREE-YEAR REVIEW; (3) THE PRESENTATION BY THE CHAIR OF A RECOMMENDATION TO THE BOARD OR EXECUTIVE COMMITTEE OF A SALARY ADJUSTMENT, IF APPROPRIATE; AND (4) THE APPROVAL OR DISAPPROVAL, AS THE CASE MAY BE, BY THE BOARD OR EXECUTIVE COMMITTEE OF SUCH RECOMMENDED SALARY ADJUSTMENT. IN FORMULATING THE RECOMMENDATION FOR A SALARY ADJUSTMENT, IT HAS BEEN THE PRACTICE OF THE CHAIR TO REVIEW COMPARABLE SALARY DATA FOR OTHER PRIVATE COLLEGES AND UNIVERSITIES IN NORTH CAROLINA TO DETERMINE SALARY TRENDS AND ACTUAL SALARIES PAID TO PRESIDENTS OF SIMILARLY SITUATED INSTITUTIONS. THESE DATA ARE SHARED WITH THE BOARD AT THE TIME THE RECOMMENDATION IS SUBMITTED TO THE BOARD OR EXECUTIVE COMMITTEE. THE BOARD DOES NOT DIRECTLY APPROVE SALARY ADJUSTMENTS FOR THE OFFICERS AND KEY PERSONNEL OF THE COLLEGE. IT DOES, HOWEVER, IN APPROVING THE BUDGET FOR THE COLLEGE DURING ANY PARTICULAR FISCAL YEAR, EXERCISE CONTROL OVER THE AMOUNT OF AGGREGATE SALARY ADJUSTMENTS BY FIXING A PERCENTAGE INCREASE IN THE BUDGET FOR SUCH INCREASES. WITHIN THIS AGGREGATE PERCENTAGE, THE PRESIDENT IS AUTHORIZED TO ADJUST INDIVIDUAL SALARIES. SOME SUCH ADJUSTMENTS WILL EXCEED THE AGGREGATE PERCENTAGE INCREASE AND SOME WILL FALL BELOW THE AVERAGE, DEPENDING ON INDIVIDUAL PERFORMANCE REVIEWS. IN ADDITION, THE PRESIDENT OF THE COLLEGE, IN REVIEWING INDIVIDUAL SALARIES, ALSO RELIES ON DATA RELATING TO COMPARABLE POSITIONS AT PEER GROUP SCHOOLS AS WELL AS OTHER STATISTICAL DATA. FORM 990, PART VI, SECTION C, LINE 18 THE COLLEGE MAKES ITS FORM 1023 AND FORMS 990 AND 990-T AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE COLLEGE'S CURRENT POLICY IS TO MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC ON A CASE-BY-CASE, NEED-TO-KNOW BASIS, RESERVING THE RIGHT TO WITHHOLD THIS INFORMATION IN SITUATIONS DEEMED POTENTIALLY HARMFUL TO THE COLLEGE. HOWEVER, CONSIDERATION WILL BE GIVEN TO POSTING THESE MATERIALS ON THE COLLEGE'S WEBSITE, WHICH IS AVAILABLE TO THE GENERAL PUBLIC, AFTER MANAGEMENT AND LEGAL COUNSEL HAVE BEEN CONSULTED AS TO THE FEASIBILITY OF THIS. THE COLLEGE MAKES ITS FINANCIAL STATEMENTS AVAILABLE ON VARIOUS WEBSITES, AND AS REQUESTED BY DONORS, FOUNDATIONS, AND AGENCIES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 2,147,144. AUDIT COMMITTEE AND SELECTION OF INDEPENDENT AUDITOR FORM 990, PART XI, LINE 2C: THE STANDING AUDIT COMMITTEE OF THE BOARD OF TRUSTEES CONSISTS OF THREE OR MORE TRUSTEES ELECTED BY THE BOARD, AND CANNOT INCLUDE THE BOARD CHAIR, VICE CHAIR, PRESIDENT, TREASURER, OR CHAIR OF THE BUSINESS AND FINANCE COMMITTEE. THE AUDIT COMMITTEE RECOMMENDS TO THE BOARD THE DESIGNATION OF AN INDEPENDENT AUDITOR EACH YEAR AND CAUSES AN AUDITED STATEMENT OF THE FINANCIAL CONDITION OF THE COLLEGE AS OF THE CLOSE OF THE FISCAL YEAR AND OF THE RECEIPTS AND EXPENDITURES OF EACH YEAR TO BE PREPARED AND SUBMITTED TO THE BOARD OF TRUSTEES AT LEAST ONCE A YEAR. THE INDEPENDENT AUDITOR HAS ACCESS TO THE AUDIT COMMITTEE AT ANY TIME.